3 Ways It Pays to Create a Diverse Workplace

If you want to do well, start by doing good. This great article that TS Associates wanted to share with you comes from Entrepreneur.

3 Ways It Pays to Create a Diverse Workplace

Employers who focus on inclusion have a better shot at recruiting and retaining a diverse employee base. Reaching gender parity, for example, is not done without intentional effort. But, that effort will pay off. Consider these three reasons why you’ll want to make diversity and inclusion a focus in your company culture.

1. Diverse teams are more innovative.

When a company’s employees come from varying ethnic groups and backgrounds, they have a variety of life experiences to call on to solve problems and inform decision-making. Diversity helps employees approach things creatively and from many different perspectives.

A Harvard Business Review article found that companies with “two-dimensional diversity” — whose leaders had three or more inherent diversity traits and at least three acquired from experience — performed better than their competitors.

2. An inclusive work environment improves employee retention.

A homogeneous work environment chases employees and prospects away — even when it’s created unconsciously. By contrast, a diverse and inclusive work culture attracts a diverse applicant pool and creates a stimulating work experience that raises both morale and retention rates.

A 2014 survey conducted by Glassdoor found that two-thirds of job applicants surveyed consider diversity to be an important part of deciding where they want to work. Women, minorities and veterans all reported a desire to be a part of a diverse workforce, suggesting that companies that provide one will become more attractive to top talent.

Company leaders, however, shouldn’t make the mistake of hiring for diversity without addressing company culture. If employees don’t feel welcome for whatever reason, they’re unlikely to stay for long. For example, do all of your marketing materials feature middle-aged white men? Make sure your companies messaging aligns with your hiring process and cultivate an inclusive culture from the top down. Hiring for diversity is great, but retention is equally important. Replacing employees who leave is time-consuming and expensive.

3. Diverse companies have higher profits.

A workforce that hails from different backgrounds allows your company to connect better with a wide range of consumers. A diverse marketing team will more effectively reach a variety of customers, and those customers will trust your company more when they feel represented by your employees. DiversityInc’s “Top 50 Companies for Diversity” last year outperformed the overall market. In many cases, a more diverse workplace will help your company capture a bigger market share.

Diversity really does improve workplace performance — it’s a competitive advantage. The same McKinsey study cited above found that companies in the bottom 25 percent of the pack in terms of gender, race and ethnic diversity were less likely to net above-average financial returns than companies with average diversity. In other words, the homogeneous nature of their workforce is actively holding them back. The message couldn’t be clearer — what’s right is also good for your bottom line.